Deutsche Telekom has slashed €100 million off its investment budget for planned broadband infrastructure development in rural areas.
The carrier has previously committed to an investment of €300 million in 2009.
Deutsche CFO Timotheus Hoettges told a conference in Duesseldorf yesterday that the costs savings were a consequence of harsh regulatory conditions. The reduction in investment has arisen due to the German regulators ruling that it had to lower the price it charges to competitors for the last mile connectivity.
In March the German regulator reduced Deutsche Telekom’s wholesale rates for last mile from €10.50 per month to €10.20. The price was effective from April.
Meanwhile Deutsche Telekom is in discussions with the Greek government to acquire an additional 5% stake in Hellenic Telecommunications Organization. Deutsche Telekom can buy the 5% stake from the government at a pre-agreed price of €27.50 a share, raising its stake in Hellenic to 30%.